WEST Wales-based Organic yoghurt producer Rachel’s Dairy has written off almost £1m of its value after a major supermarket stopped selling some of its products.

WEST Wales-based Organic yoghurt producer Rachel’s Dairy has written off almost £1m of its value after a major supermarket stopped selling some of its products.

The move, revealed in recently published accounts comes months after the Aberystwyth company was sold by US group Dean Foods to family-owned French giant Lactalis.

The company has however shrugged off the de-listing set back and “difficult economic conditions” to grow sales and market share throughout 2011 as it invested in TV advertising for the first time in its 29-year history. Turnover rose 20% to £25.9m in the year to December 2010. But the £978,000 write-off of goodwill created a £409,000 pre-tax loss.

Rachel’s has 140 staff and remains one of the largest private sector employers in Aberystwyth, Ceredigion.

It had credited more than £1.8m of government grants in its accounts in 2009, of which £1.1m remains to mature and be credited as profits.

Calon Wen, the co-operative of 23 farms that supply Rachel’s with its organic milk, has said they retain the support of the French group. However, Rachel’s transferred production of its rice-based desserts from the UK to France. The company, which started as a farm in Borth in the 1960s, sells more than 10 million pots of yoghurts to the main supermarkets, hotel chains and rail companies each year. Founders Rachel and Gareth Rowlands remain with the business but are no longer directors.

The company expanded its core range of yoghurts last year, experimenting with limited edition varieties such as its award-winning Greek-style ginger flavoured yoghurt.

A company spokesman said: “Unfortunately, we are unable to offer any additional comment at this time.”

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